Suncorp's storm costs blow out

MELBOURNE - Suncorp-Metway says costs for storms and weather events have exceeded its half year allowance by A$70 million ($88 million), after it received claims relating to recent flooding in Queensland and northern New South Wales.

Suncorp's allowance for major weather events is A$120 million per half year.

The banking and insurance group has received 4500 claims related to the floods and its total costs for major weather events are now running at A$190 million for the second half of fiscal 2009, investor relations manager Mark Ley said.

Suncorp received around 12,000 claims related to the Brisbane storms earlier this year.

"I doubt if it would get anywhere near that," Ley said, of the damage from the current events.

The claims have been lodged with a range of Suncorp companies including GIO, AAMI, Apia and Suncorp.

Across the industry, around 9500 claims from customers in the affected areas were received by yesterday, the Insurance Council of Australia said.

Early ICA estimates put the insurable cost of the disaster at about A$39 million, although assessments are still to be made in areas where waters have yet to recede.

Insurance Australia Group's businesses, NRMA Insurance and CGU, had received more than 3000 claims from customers by yesterday, group spokeswoman Emma Foster said.

- AAP